with jumei.com in May 16th to ring the bell in New York, Chinese continued into electricity supplier market, market focused attention. The same is the electricity supplier companies, Dangdang market capitalization of only more than 900 million, and then show vip.com’s market capitalization of up to $8 billion 200 million, the highest exceeded the market value of ten billion mark, once became China’s top fourth Internet companies. What is the reason? GF Securities (000776, shares) also gives jumei.com’s market capitalization of $5 billion valuation. What is the reason for the size of only half of vip.com to jumei.com, but it got 60% of the market value in the end? China flash taker boss who is

?

poly America, the only product to do flash purchase express

(Flash Sales), flash purchase also called flash sale, originated in the French website Vente Privé E, a retail model is the hottest Internet business, to limit sale in the form of regular introduction of domestic and foreign well-known brands of goods Limited registered members for panic buying. A research report from Zhongshan securities analyst Lei Yu that flash purchase business model of growth is much higher than the traditional electricity supplier, at the same time, flash purchase purchase rate is much higher than the traditional electricity providers, resulting in operating costs far higher than traditional electricity supplier.

China’s first flash purchase company vip.com is the use of such a model to achieve the myth of the capital market. The same is the flash purchase mode of jumei.com because the flash sales model to achieve rapid growth.

main cosmetics jumei.com revenue last year was $483 million, up 107% year-on-year, compared with the traditional business growth this year a total of only 31.9%.

jumei.com, the election of the air

cosmetics.

standing in the air, the pig can be blown up. Electricity supplier also has an air outlet, and Chen Ou choose the electricity supplier is a cosmetic outlet. The air will let vip.com clothing category to catch up.

reasons: the rapid growth of the cosmetics market. With the change of population structure, income level and cultivate the habits of domestic cosmetics, the cosmetics market is expected to continue rapid growth, to 2018 the market size will reach 431 billion 800 million yuan, the annual compound growth rate for the next five years is 14.3%. Huge market space and the rapid growth of the scale of the industry participants to provide a lot of opportunities. It is said that Chen ou jumei.com in addition to the electricity supplier’s own growth, there is huge room for growth from the whole industry market support. The growth of China’s garment industry is far below this level.

reason two: the gross profit margin of the cosmetics industry is doubled in the clothing industry. According to industry experience, cosmetic agent gross margin of around 20%, the exclusive agent in about 50% gross margin, gross margin brands can even reach 70%, high margin with high repeat purchase rate and low return rate, the beauty has become one of the category is very suitable for online shopping, which is jumei.com can quickly realize the category selection the fundamental basis of the profit. >

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